This article provides a framework, with supporting examples, for addressing finance for smallholder investment for innovation. Smallholder households function in interconnected ‘systems’ radiating outwards from the household unit: livelihoods, agricultural market systems, community and society, and infrastructure and policy. An inclusive livelihoods model analyses what would need to be true for uptake of innovations by women, men, and youth, and what financial and non-financial products are needed. ‘Customer centric’ integrated value chain financing solutions are tailored to smallholder market segments along eight pathways for growth. A roadmap for facilitating innovation and change using priority pathways, yet grounded in proven financial and development principles, is recommended. Tools and approaches include: value chain facilitation and capacity development – aggregation, market linkages, and private–public partnerships; financial tools – transaction-based financing, flexible products, and risk mitigators; and innovations in service delivery – digital and ICT applications.

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Delwaide, A. and Coulson, L. (2019) A Case Study of the Chithumba Model: A Non-Traditional Finance Mechanism to Improve Access to Farm Inputs in Malawi [pdf], MEDA and ATL <https://www.meda.org/innovate/innovate-resources/821-partner-publication-a-case-study-of-the-chithumba-model-a-non-traditional-finance-mechanism-to-improve-access-to-farm-inputs-in-malawi/file> [accessed 1 November 2019].

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IDEPRO (2016) Presentation by IDEPRO, summary from workshop, Modelos Exitosos para el Financiamiento del Sector Rural y Agrícola: Percepciones de América Latina y el Caribe, 27 October 2016 [online], Incofin IM <http://www.idepro.org/Publicaciones/Publicaciones-Idepro> [accessed 16 December 2019].

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Kumar, A. (2016) Presentation at MEDA Symposia, INNOVATE – Fostering Innovation through Inclusive Non-traditional Financial Services, New Delhi, India, 6 December 2016 [online] <https://www.meda.org/innovate/innovate-resources/937-samunnati-financial-services-for-fostering-innovation-december-2016/file> [accessed 1 November 2019].

MEDA (2019) A Customer Centric Lens for Good Agricultural Practices [online], MEDA-IDRC <https://www.meda.org/innovate/innovate-resources/864-a-customer-centric-lens-for-good-agricultural-practices/file> [accessed 16 December 2019].

MEDA, iDE Nepal, and CARE Bangladesh (2019) ‘Learning journeys of smallholder finance and innovation adoption’, presentation at the 6th World Congress on Rural and Agricultural Finance, 13 November 2019, New Delhi [online] <https://www.meda.org/innovate/innovate-resources/906-innovate-event-at-the-6th-world-congress-on-rural-and-agricultural-finance/file> [accessed 20 November 2019].

Miller, C. and Jones, L. (2010) Agricultural Value Chain Finance: Tools and Lessons [pdf], Rugby, UK: Practical Action Publishing <http://www.fao.org/3/i0846e/i0846e.pdf> [accessed 1 November 2019].

Pakistan Microfinance Network (2019) Warehouse Receipt Financing: Tackling the Financial Needs of Smallholder Farmers in Pakistan [online] <https://www.meda.org/innovate/innovate-resources/913-pmn-meda-warehouse-receipt-financing-case-study-nov-2019/file> [accessed 6 December 2019].

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Villarroel, P. (2018) Experiencias En El Uso De Garantías No Convencionales Como Respaldo De Operaciones Crediticias [online], CIDRE IFD <https://www.meda.org/innovate/innovate-resources/936-cidre-literature-review-final-report-paul-villarroel-august-2018/file> [accessed 20 November 2019].

Zook, D. (2014) ‘Understanding smallholders’ financial needs is key first step’ [blog], CGAP, 27 January 2014 <http://www.cgap.org/blog/understanding-smallholders-financial-needs-key-first-step> [accessed 1 November 2019].

Anderson, J. and Ahmed, W. (2016) Smallholder Diaries: Building the Evidence Base with Farming Families in Mozambique, Tanzania and Pakistan [pdf], Perspectives No. 2, CGAP <https://www.cgap.org/sites/default/files/researches/documents/CGAP_Persp2_Apr2016-R.pdf> [accessed 16 December 2019].

Christen, R. and Anderson, J. (2013) Segmentation of Smallholder Households: Meeting the Range of Financial Needs in Agricultural Families, CGAP focus note no. 85, Washington, DC: World Bank Group <http://documents.worldbank.org/curated/en/539551468350106000/Segmentation-of-smallholder-households-meeting-the-range-of-financial-needs-in-agricultural-families> [accessed 1 November 2019].

Dalberg Global Development Advisors (2012) Catalyzing Smallholder Agricultural Finance [online] <https://www.andeglobal.org/blogpost/737893/155213/Catalyzing-Smallholder-Agricultural-Finance> [accessed 16 December 2019].

Delwaide, A. and Coulson, L. (2019) A Case Study of the Chithumba Model: A Non-Traditional Finance Mechanism to Improve Access to Farm Inputs in Malawi [pdf], MEDA and ATL <https://www.meda.org/innovate/innovate-resources/821-partner-publication-a-case-study-of-the-chithumba-model-a-non-traditional-finance-mechanism-to-improve-access-to-farm-inputs-in-malawi/file> [accessed 1 November 2019].

GIZ and DFID (2012) Promoting Women’s Financial Inclusion: A Toolkit [pdf], <https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/213907/promoting-womens-financial-inclusion-toolkit.pdf> [accessed 1 November 2019].

Global Partnership for Financial Inclusion (GPFI) and International Finance Corporation (IFC) (2012) Innovative Agricultural SME Finance Models [pdf], Washington, DC: IFC <https://www.gpfi.org/sites/gpfi/files/documents/G20%20Innovative%20Agricultural%20SME%20Finance%20Models.pdf> [accessed 1 November 2019].

Hernandez, E. (ed.) (2016) Estrategias innovadoras de gestión de riesgos en mercados financieros rurales y agropecuarios: Experiencias en América Latina [pdf], Rome: FAO and Academia de Centroamérica <http://www.fao.org/3/a-i5503s.pdf>.

IDEPRO (2016) Presentation by IDEPRO, summary from workshop, Modelos Exitosos para el Financiamiento del Sector Rural y Agrícola: Percepciones de América Latina y el Caribe, 27 October 2016 [online], Incofin IM <http://www.idepro.org/Publicaciones/Publicaciones-Idepro> [accessed 16 December 2019].

IFAD and UNEP (2013) Smallholders, Food Security, and the Environment [pdf] <https://www.ifad.org/documents/10180/666cac24-14b6-43c2-876d-9c2d1f01d5dd> [accessed 1 November 2019].

ILO (2016) Women at Work: Trends 2016 [pdf], Geneva: ILO <http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_457317.pdf> [accessed 1 November 2019].

Kumar, A. (2016) Presentation at MEDA Symposia, INNOVATE – Fostering Innovation through Inclusive Non-traditional Financial Services, New Delhi, India, 6 December 2016 [online] <https://www.meda.org/innovate/innovate-resources/937-samunnati-financial-services-for-fostering-innovation-december-2016/file> [accessed 1 November 2019].

MEDA (2019) A Customer Centric Lens for Good Agricultural Practices [online], MEDA-IDRC <https://www.meda.org/innovate/innovate-resources/864-a-customer-centric-lens-for-good-agricultural-practices/file> [accessed 16 December 2019].

MEDA, iDE Nepal, and CARE Bangladesh (2019) ‘Learning journeys of smallholder finance and innovation adoption’, presentation at the 6th World Congress on Rural and Agricultural Finance, 13 November 2019, New Delhi [online] <https://www.meda.org/innovate/innovate-resources/906-innovate-event-at-the-6th-world-congress-on-rural-and-agricultural-finance/file> [accessed 20 November 2019].

Miller, C. and Jones, L. (2010) Agricultural Value Chain Finance: Tools and Lessons [pdf], Rugby, UK: Practical Action Publishing <http://www.fao.org/3/i0846e/i0846e.pdf> [accessed 1 November 2019].

Pakistan Microfinance Network (2019) Warehouse Receipt Financing: Tackling the Financial Needs of Smallholder Farmers in Pakistan [online] <https://www.meda.org/innovate/innovate-resources/913-pmn-meda-warehouse-receipt-financing-case-study-nov-2019/file> [accessed 6 December 2019].

Rural and Agricultural Finance Learning Lab and ISF Advisors (2019) Pathways to Prosperity: 2019 Rural and Agricultural Finance State of the Sector Report [online] <https://pathways.raflearning.org/?mc_cid=18d3d0774b&mc_eid=6ad9efc4c5> [accessed 20 November 2019].

Villarroel, P. (2018) Experiencias En El Uso De Garantías No Convencionales Como Respaldo De Operaciones Crediticias [online], CIDRE IFD <https://www.meda.org/innovate/innovate-resources/936-cidre-literature-review-final-report-paul-villarroel-august-2018/file> [accessed 20 November 2019].

Zook, D. (2014) ‘Understanding smallholders’ financial needs is key first step’ [blog], CGAP, 27 January 2014 <http://www.cgap.org/blog/understanding-smallholders-financial-needs-key-first-step> [accessed 1 November 2019].